The asset issuance chain Noble and tokenized real-world asset (RWA) platform Ondo Finance (ONDO) announced their partnership on Thursday. The goal of their partnership is to introduce tokenized U.S. Treasury products to the Cosmos (ATOM) ecosystem.USDY, a tokenized note backed by short-term U.S. Treasuries offering a 5.2% annual yield, is the first asset Ondo wants to issue natively through Noble. A representative told CoinDesk that the goal is to launch USDY before the end of the second quarter of this year. Ethereum, Solana, Mantle, and Sui are presently hosting USDY.
As a result of Ondo’s entry into the Cosmos ecosystem, its token offerings will be connected with more than 90 blockchains, increasing consumer traction for its products, which are backed by US Treasury bonds and offer yield as a savings, payment, and collateral asset.Known as the “internet of blockchains,” Cosmos is a network that facilitates interoperability across several blockchains, such as dYdX (DYDX), Celestia {{TIA}}, Sei (SEI), and Injective (INJ). Ondo intends to utilize Noble, an application-specific chain in the ecosystem that is intended to issue native digital assets, as a “routing hub” for liquidity in the Cosmos network.
“Having Noble as our issuance partner will bring vastly improved utility and liquidity to appchains and their users, all while offering exposure to yielding instruments,” said Nathan Allman, founder of Ondo Finance.
In the past year, the $1.2 billion tokenized Treasury market has grown significantly as cryptocurrency investors and digital asset businesses looked for safe methods to store their blockchain-based cash holdings and earn an interest. One of the biggest players in this market is Ondo Finance.Since its launch in early 2023, Ondo’s tokenized offerings have drawn deposits totaling over $300 million. BlackRock, a well-known traditional asset management company, has joined forces with Securitize to enter the market and offer the Treasury-backed token BUIDL, which Ondo is currently using to back its OUSG token.